City officials halted sales plans in August after Williams vowed to find money and staffing to open a 400-bed temporary shelter, hoping it would be a first phase toward a grander vision.

But Williams' pick to operate the shelter - Ibrahim Mubarak, co-founder of the homeless camp Right 2 Dream Too - didn't sit well with city housing officials. Commissioner Dan Saltzman walked away from the deal last week and the rest of City Council cemented that decision Wednesday.

Portland's Bureau of Environmental Services, which owns the 14-acre Terminal 1 site along Northwest Front Avenue, now plans to re-list the property and accept bids through Nov. 18. A deal could be in place by early 2017.

Commissioner Nick Fish, who oversees the sewer bureau, said he will "not seriously entertain" proposals that don't comply with the site's current industrial zoning. But it's not clear if Fish will get to make a final decision, as Mayor-elect Ted Wheeler takes office Jan. 1 and could re-arrange bureau assignments.

"We should not miss an opportunity to applaud Homer Williams and his partners for offering to help," said Fish, who had been the City Council's most vocal opponent of Williams' plan for the site.